“If contracted quality and service level requirements are met and efficiencies are achieved, the contract can be extended to the ship’s withdrawal from service dates,” Senator Johnston said.

Senator Johnston said this was the second of the grouped-asset, long-term, performance-based contracts for the repair and maintenance of the Navy’s major surface ships.

Planned work on the frigates will be undertaken at Navy’s GardenIsland facility in Sydney.

“It demonstrates the Government’s commitment, through the Defence Materiel Organisation to apply innovative contracting practices to get the best outcome for the Navy, for industry and for every Australian taxpayer.”

“We have always recognised that the grouping of ship repair and maintenance work offers the potential for real savings by reducing the administrative burden of per-event tender contracting, providing greater certainty of revenue streams and work effort, and promoting better planning.”

Senator Johnston said the design of the contract will provide both industry and Navy with greater certainty and stability in the repair and maintenance of the guided missile frigates.